I love Tiny houses, we actually took a trip to Colorado and decided to stay in all tiny house area in Lyons Colorado called Wee Casa which a tiny house only resort. You can pick what house you want to stay at, everything from a hobbit house to a modern style tiny home. Me an my wife went with a basic model as the higher end modern house (which we really wanted) was just to much for our budget. Ultimately the plan was to see if you can really live in 200 sq ft with 2 kids.
Can we live in a house that size with 2 kids? I think the answer is no, at least not for us. It was definitely fun to stay their as each house is designed internally and externally to feel like an actual home. The kids loved it, for them it felt like staying on a tree house. But its just not enough space for 4, our current house is close to 1800 sq ft and I think this size is perfect for us as everyone has enough space for them selves.
But we have thought about putting a tiny house in our back yard, mainly as a guest house or may be an airbnb option. I have seen tiny houses ranging from $30k up to $120k. Tiny Heirloom has a very nice selection of houses that really match our style. Below is one of our favorites.
There are also website with plans available to build your own that I am looking at for a potential future project.
Could you live in a tiny home? I know I could not but I would not mind having one of the homes in the backyard so friends and family can enjoy it during a week end visit.